Berger Paints targets N1.79bn revenue in half year

Berger Paints Plc said it is targeting N1.79 billion as revenue for the half year, H1, ended June, 2016, which represents 38 per cent increase over N1.299 billion recorded in H1, 2015. The company also projects a 24 per cent increase in gross profit from N634 million in half year 2015 to N786 million, while the company expects a three per cent decline in profit before tax to N230 million from N237 million in 2015.

Addressing stockbrokers at the Facts behind Figures on the Nigerian Stock Exchange, NSE, the Managing Director, Mr. Peter Folikwe, said the company undertook a major strategic scheme to outsource its existing depots in order to achieve operational efficiency, reduce cost and improve revenue. “We have successfully outsourced 16 of these depots to operators and are on track to complete the outsourcing of the last depot. Our focus is to rollout the outlets franchising scheme across all states in Nigeria, gaining visibility, coverage, availability and sales in 2016.

“We recently completed the full upgrade of the solvent-based section of our factory. This revamp would improve product quantity and quality and operational efficiency, which would enhance our footprint as a leading brand in the industry,” Folikwe said.

He noted that the company is also working on delivering the first automated paint manufacturing plant in Sub-saharan Africa, adding that efforts are being made to ensure that the plant is commissioned this year. When fully operational, he said the new plant would reduce cost of production for the company, reduce response times, as well as improve the product quality to enable it compete favourably with improved brands.

He noted that in spite of the first quarter results, where the company recorded 66 per cent decline in both profit before tax and profit after tax, and 72 per cent decline in operating profit, the company has revamped its route-to-market initiatives to drive aggressive sales. He stated that the outsourced partners are being provided massive sales and marketing support to a desirable change in trade.